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Successful asset protection and loss prevention efforts demand a strategic approach. In a constantly changing risk landscape, loss prevention technology gives retailers the situational awareness needed to stay ahead of threats. Retail security and loss prevention teams can dramatically reduce shrinkage, enhance safety, and improve security across all retail locations by implementing emergency communication and threat intelligence software and robust communication, training, and community initiatives.

Emphasizing the importance of collaboration and communication, Mires states: “It’s about speed, accuracy, and knowledge. Fast information is useless if it’s inaccurate.” To ensure reliable information, Mires often validates information with industry peers. “We can help each other to a certain degree. Most of our stores are located in centers with other retailers, and we frequently communicate about what we’re seeing. It’s important to have a network of people that you can rely on.”

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Retailers can collaborate to fight retail crime by identifying repeated theft patterns and sharing what works. For instance, local retailers in a shopping district might share information about shoplifting incidents and implement consistent security measures, such as installing CCTV cameras and training staff to recognize suspicious behavior. This cooperative effort not only deters theft but also enhances the overall safety and security of the retail environment, benefiting all involved.

Supplier fraud, also called vendor fraud or procurement fraud, isn’t included in the latest NRF figures, but it can be costly. It’s generally considered external shrink because it happens when outside vendors come in-store to monitor or stock inventory.

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Effective loss prevention strategies give complete visibility into critical events happening both in-store and off-site, helping reduce retail loss by enabling timely interventions and proactive measures. In this article, we’ll cover six strategies loss prevention professionals should implement—and share additional loss prevention tips from today’s top retail experts.

Retailers can’t combat crime alone. But community partnerships can help reduce retail crime by sharing best practices. One of the goals behind RILA’s new Vibrant Communities Initiative is for retailers to share information, work together, and reduce retail losses.

Like many retail leaders, Khristopher Hamlin, Vice President of Asset Protection at the Retail Industry Leaders Association, is concerned with the growing rise in retail crime. “Everyone says we have to do something. So many people are talking about the problems we face and demanding action,” he says.

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Evaluate the effectiveness of current policies and update them, so you can establish and enforce clear guidelines for addressing retail loss. Policies to review and consider updating include:

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While many loss prevention strategies focus on external theft, internal theft by staff members accounts for 29% of retail business shrink. Even though most employees are honest and ethical, those who aren’t can significantly impact an organization’s bottom line. The top four methods of employee theft are:

Is your retail organization ready for any threat? Download the threat assessment template to identify and prioritize the threats that will have the most significant impact.

Hamlin adds, “The goal is to collaborate and share information in a way that has never been done before—supporting each other through these events and revitalizing our communities.”

Human and operational errors are inevitable in retail, but they can quickly erode profits. This type of shrinkage covers a wide range of scenarios, including:

While there’s no way to eliminate retail loss, you can minimize it. Here are six strategies that can help reduce retail shrinkage, enhance security measures, and ensure employee safety:

Mass notification systems that allow employees to communicate across multiple channels—including email, phone, text, and mobile app—also make it easier to send and receive critical messages without delay. This capability is especially important for employees on the shop floor who may not have regular access to email or desktop notifications.

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Another thing to consider is using threat intelligence software to improve store security and employee safety. For large retailers with a lot of locations or physical assets, continually monitoring emerging threats used to be impossible. But now, threat intelligence solutions can proactively inform employees of potential threats or vulnerabilities affecting their stores. An emergency communication solution with integrated threat intelligence like AlertMedia can help retailers reduce the impact of a wide range of safety, security, and operational threats.

Preventing retail loss requires a blend of strategies—from the monitoring of potential threats to effective communication and collaboration. Here’s what you need to know.

As the largest cause of retail loss, external retail theft—sometimes called external shrink—costs retailers billions of dollars annually. Common types of external theft include:

Within an organization’s communication plan, leaders need to consider how to facilitate this type of two-way communication. The right emergency communication solution will allow employees to instantly and discreetly report incidents or request assistance without getting involved in a potentially dangerous confrontation.

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Minimizing retail loss requires seamless, two-way communication at all organizational levels. Information from store associates on the shop floor is as important as communications from regional leadership or the security team.

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Retail stores lost nearly $122 billion to theft last year. By 2026, that figure is projected to increase to over $150 billion. While these material losses are concerning to retailers, what’s just as worrying is that they’re often also accompanied by violent, aggressive behavior from shoplifters.

Effective loss prevention hinges on all employees working together. The only way to achieve that is through well-crafted company policies that have buy-in at all levels of the organization.

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Mires and his team implemented a range of protections, including lone worker safety devices, remote CCTV systems, and protocols for active shooter scenarios.

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When Jim Mires, Vice President of Loss Prevention and Strategy at Sally Beauty, wanted to reduce loss and protect store associates, he focused on updating security devices, enhancing policies, collaborating with retail industry peers, and prioritizing effective communication.

Retail loss prevention refers to the tactics and strategies implemented to reduce retail theft, fraud, and other forms of inventory shrinkage. “It’s about much more than dealing with kids stealing bubble gum,” says Jacque Brittain, Editorial Director at Loss Prevention Magazine. While small-scale thefts like these might be the first thing that springs to mind, Brittain notes that loss prevention measures in retail need to address inventory shrinkage and a wide range of criminal enterprises.

Brittain notes that there’s sometimes a disconnect between retail store staff and loss prevention teams. While your team’s priority might be theft prevention, theirs is making sales. “How do you get them to do what you want them to do and follow the different protocols necessary to keep the business running smoothly from that side of the business?” he says.

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Violence towards employees is a huge concern, but retail loss encompasses more than petty theft and organized retail crime (ORC). And that puts retail security and loss prevention teams under pressure to monitor a wide range of potential threats. From employee safety to supply chain integrity and crime prevention, there’s a lot to consider.

Adapting store layouts to maximize visibility can help deter external theft by making it harder for shoplifters to steal stock. Consider implementing the following changes:

Retailers can put their teams through all types of emergency response training programs to help deal with those types of things, Brittain adds. For retail stores, the primary types of training to consider include:

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In response, RILA launched the Vibrant Communities Initiative in partnership with the National District Attorneys Association (NDAA). The initiative aims to share information, discuss common challenges, and work together to identify criminal networks.